72Payroll deduction schemes: contributions to agents' expensesU.K.
(1)This section applies if—
(a)a person carrying on a trade (“the employer”) is liable to make payments to an individual,
(b)income tax falls to be deducted from those payments as a result of PAYE regulations, and
(c)the employer withholds sums from those payments in accordance with an approved scheme and pays the sums to an approved agent.
(2)In calculating the profits of the employer's trade, a deduction is allowed for expenses incurred by the employer in making a payment to the agent for expenses which—
(a)have been incurred, or
(b)are to be incurred,
by the agent in connection with the agent's functions under the scheme.
[F1(2A)In calculating the profits of the employer's trade on the cash basis, subsection (2) has effect as if paragraph (b) were omitted.]
(3)In this section “approved agent” and “approved scheme” have the same meaning as in section 714 of ITEPA 2003.
Textual Amendments
F1S. 72(2A) inserted (with effect in accordance with Sch. 4 paras. 56, 57 of the amending Act) by Finance Act 2013 (c. 29), Sch. 4 para. 16